On Tuesday, Penn National Gaming Inc. (NASDAQ:PENN) shares advanced nearly 5% after receiving a buy rating from Bernstein. Analysts Zachary Silverberg and Brian McNamara initiated PENN coverage naming the stock among a handful of other gaming stocks rated buy.
The analysts said they prefer recommending stocks that look undervalued whilst having exciting growth prospects and a solid balance sheet. Other gaming stocks to receive a buy rating from the analysts include International Game Technology Plc. (NYSE:IGT), Churchill Downs Inc. (NASDAQ:CHDN), Scientific Games Corp (NASDAQ:SGMS), and FuboTV Inc. (NYSE:FUBO).
The analysts issued a price target of $95, reflecting an upside potential of more than 20% on PENN stock.
Should you buy PENN shares?
From an investment perspective, PENN shares trade at an attractive forward P/E ratio of 26.56, making the stock a compelling option for value investors. Moreover, analysts forecast its earnings per share to skyrocket by more than 162%, thus gaining the attention of growth investors.
Therefore, with the company offering exciting growth prospects at a reasonable valuation multiple, it could be time to buy PENN shares.
Source – TradingView
Technically, Penn National Gaming stock seems to have recently bounced off the 100-day moving average to surge towards the trendline resistance of the ascending channel.
However, the stock is yet to reach the overbought conditions of the 14-day RSI, thus leaving room for more upward movement.
Therefore, investors could target extended gains at about $92.82, or higher at $102.80. On the other hand, if the trendline resistance triggers a pullback, the stock could find support at $73.12, or lower at $64.68.
It may not be too late to buy PENN stock
In summary, although PENN shares are up more than 15% since the 21st of September, the stock still offers exciting growth prospects at reasonable valuation multiples.
Therefore, with shares yet to reach overbought conditions, the current rally could continue for the foreseeable future.
The post Is it time to invest in PENN shares as Bernstein initiates coverage with a buy rating? appeared first on Invezz.
